In the early periods of society, on account of the comparative scarcity of these advances of labour, this remuneration would be high, and would affect the value of such commodities to a considerable degree, owing to the high rate of profits. In the more advanced stages of society, the value of capital and commodities is largely affected by profits, on account of the greatly increased quantity of fixed capital employed, and the greater length of time for which much of the circulating capital is advanced before the capitalist is repaid by the returns. In both cases, the rate at which commodities exchange with each other, is essentially affected by the varying amount of profits. It is impossible, therefore, to agree with Mr. Mill, when he says, “It appears by the clearest evidence, that quantity of labour in the last resort determines the proportion in which commodities exchange for one another.”[14] On the same grounds Mr. Mill is quite incorrect, in calling capital hoarded labour. It may, perhaps, be called hoarded labour and profits; but certainly not hoarded labour alone, unless we determine to call profits labour. This Mr. Mill himself could not but see; and consequently, in his second edition, he has deserted Mr. Ricardo, and boldly ventured to say, that “profits are in reality the measure of quantity of labour.”[15] But as this very peculiar and most unwarranted abuse of terms belongs, I believe, originally to Mr. Macculloch, it may be best to defer the more particular examination of it, till I come to consider the definitions and application of terms adopted by Mr. Macculloch. In a work like that of Mr. Mill, which has so much the air of logical precision, one should have hoped and expected to find superior accuracy in the definitions, and great uniformity in the application of his terms, in whatever sense he might determine to use them; but in this the reader will be disappointed. It is difficult, for instance, to infer from the language of Mr. Mill, whether a commodity is to be considered as altering in its value in proportion to its costs of production, or in proportion to its power of commanding other commodities, and they are certainly not the same. At the commencement of his seventh section, of chap. iii., entitled, “_What regulates the Value of Money_,” he says, “By the value of money is here to be understood the proportion in which it exchanges for other commodities, or the quantity of it which exchanges for a certain quantity of other things.” This is, to be sure, a very lax description of the value of money, very inferior in point of accuracy, even to what would be understood by _the general power of purchasing_. What are the things a certain quantity of which is here alluded to? and if these things change in the costs of their production, will money be proportionally affected?